These provisos in South Carolina’s FY26 budget warrant closer scrutiny

When the S.C. Senate passed their budget without new legislator-requested earmarks, “one-time” temporary laws known as “provisos” were still included.  

Provisos outline directives for the use of budget funds, with some provisos including nonrecurring fund disbursements that represent continued earmark spending from past years.  

There are several notable provisos in the FY26 budget that should have seen a committee hearing and a proper chamber floor process. The provisos below should not be in the budget, with some such as debit card usage for lottery purchases and film industry tax incentives representing actual failed legislation and debates.  

New provisos for FY26  

3.6 Debit card payments for lottery tickets 

This proviso allows the use of debit cards for lottery ticket purchases. Currently lottery tickets can only be purchased with cash. A bill had been proposed this legislative session to approve the use of debit cards for lottery purchases, but it was not heard or debated in committee. The General Assembly must engage in the legislative process of committee hearings and floor action.  

47.1 “South Carolina Wildlife” magazine 

South Carolina previously had a proviso that prevented DNR from using funds for the SC Wildlife magazine, and the FY26 budget has this stricken. Let’s not fund a magazine with taxpayer dollars.  

49.24 Local film tax incentives 

This proviso carries over $31 million with an additional $4 million allocation for film producers to receive a rebate of 25% of all their production costs if their annual budget is between $250,000-999,999. H.3832 on the House floor hikes the limit to $2 million, Lawmakers in the House elected to adjourn debate on the bill until January of 2026 but the proviso remains in the budget.  

91.13 Lawmaker raises 

This proviso increases in-district compensation for Lawmakers. While it could be considered a proper adjustment for inflation, the Senate should not slip this into the budget absent of any bill processes.  

96.6 & 117.207 Oath of office 

These provisos withhold funding for boards and commissions of the state or any political subdivision that does not take the Constitutional oath of office. The oath of office should be taken; However, Senators should not bypass committees and floor debate on bills to institute governance. Especially when the issue is so uncontroversial and would likely pass with ease.  

FY25 provisos still in the FY26 budget 

Provisos that remain from FY25 include waiving the tourism match requirement for state dollars, maintaining finance committee chairmen on the board of the Coordinating Council for Economic Development, and keeping the Strategic Economic Development Fund grant program running.  

The Department of Motor Vehicles still has their FOI request fee collections directed to the State Highway fund, with new permission to hike fee rates beyond 2001 levels.  

A proviso still remains in the budget that suspends the term limits of the State Ports Authority chairman, while a Covid-era policy remains allowing state-retirees to return to work full-time while collecting pension benefits if they are participating in the state’s “public health preparedness and response to the COVID-19 virus.”  

In-state tuition mitigation is still taking a huge chunk out of the budget through a proviso, with large disbursements going to universities that taxpayers already fund.  

Conclusion 

The merit of the majority of these issues is questionable at best but regardless, if lawmakers wish to make policy changes, they should sponsor a bill and send it through the legislative process.  

Inserting legislation into the budget in the form of a proviso allows a bill to circumvent a sub and full committee body in both legislative chambers.  

As the House and Senate prepare to meet in conference committee to finalize the budget, lawmakers should look closely at these (and all) provisos, and ask the question: Are we directing the use of funds or using this process to enact legislation and bypass the standard legislative process?  

As the House and Senate meet in conference committee to finalize the budget, lawmakers should take a closer look at these–and all–provisos, and ask: Are we directing the use of funds, or using the budget to pass legislation?